Division of Property

Maryland’s Law of Contempt of Court… as Applied in a Contentious Caroline County Divorce

December 10, 2024 | by Anthony A. Fatemi, LLC

Ideally, all divorces would proceed maturely, respectfully, and collaboratively for the benefit of both spouses (and their children, if any.) Reality tells us that divorces often fall short of this ideal. Divorces bring out strong emotions, and intense emotions sometimes lead spouses to engage in misconduct. When your spouse has done so, one option may be to pursue a finding of contempt of court. Because Maryland law recognizes many types of contempt, it is wise to consult an experienced Maryland divorce lawyer to advise you about pursuing a contempt case.

Earlier this month, the Appellate Court again waded into the contentious divorce of G.S. and T.S. from Caroline County, a dispute that raised many contempt-related issues.

In 2022, the couple worked out a divorce settlement agreement that they placed “on the record” in court during the second day of their divorce trial. The agreement covered terms related to child custody and parenting time and also directed the husband to pay the wife a monetary award of $100,000.

Prenuptial Agreement, Postnuptial Agreements, and the Divorce of a Maryland Native Turned Reality TV Star

November 29, 2024 | by Anthony A. Fatemi, LLC

One does not necessarily expect to unearth beneficial knowledge about the law from the latest celebrity gossip news regarding “reality” television stars. Perhaps there really is a time for everything, as the latest reports about the divorce involving one “Real Housewives” star show offer some valuable clues about what – and what not – to do as you navigate the process of prenuptial agreements, postnuptial agreements, and divorce. One thing that is always a good idea is to contact a knowledgeable Maryland divorce lawyer whenever you have questions.

Ashley Darby, a native of Sandy Spring, Maryland, and one of the featured spouses on “Real Housewives of the Potomac,” filed for divorce from her husband, Michael Darby, earlier this month, according to TMZ. The couple separated in April 2022. The husband told TMZ that the spouses had worked out a mutually agreeable marital settlement agreement, guided in part by the couple’s prenuptial agreement.

According to other sources, including Yahoo! Entertainment News, the couple had multiple agreements.

Dealing With Cryptocurrency and Other Digital Assets in a Maryland Divorce

October 31, 2024 | by Anthony A. Fatemi, LLC

Earlier this month, news sources reported that cryptocurrency is now an asset subject to distribution in divorce… in South Korea. While your divorce likely won’t be adjudicated using the laws of South Korea, this new development half a world away is still a significant reminder that digital assets like crypto are an ever-increasing portion of married couples’ asset portfolios and, in Maryland, they are (and have been for several years) subject to equitable distribution in a divorce in this state. If you have questions about your digital assets and equitable distribution, be sure to seek out answers you can rely on by talking to an experienced Maryland divorce lawyer.

In Maryland, we have the Marital Property Act. That statute says that all marital property is subject to equitable distribution. That includes digital assets like Bitcoin, Ethereum, Tether, and other forms of crypto, but these assets present some unique challenges in a divorce. Two of the biggest are: finding it and valuing it.

Let’s tackle the latter first. Valuing crypto is inherently complicated because crypto’s value is much more volatile than other assets. Take Bitcoin, for example, which went from 62,800 to below 32,000 to 52,700 to 42,100 to 67,000… in a span of just seven months in 2021. This rapid and radical shifting can make pinpointing an accurate value of your (or your spouse’s) crypto assets particularly problematic.

The Importance of QDROs in Maryland Divorces that Include Pensions or Retirement Accounts

September 30, 2024 | by Anthony A. Fatemi, LLC

Family law can involve many acronyms, ranging from those related to domestic violence (DVPO) to child support (CCPA.) Even if your divorce involves no children and no violence, there is an acronym that may be important to you: QDRO. QDRO stands for “qualified domestic relations order,” and is a court mechanism by which someone who is not the holder of a pension or retirement account may receive some or all of those funds. When one or both spouses in a divorce have substantial pension/retirement assets, a QDRO can play an integral role in ensuring that the divorce’s property division is fair. For information about how a QDRO might factor into your divorce case, get reliable answers by speaking to an experienced Maryland divorce lawyer.

A QDRO can come into existence in multiple ways. In one instance, the spouses are unable to agree and the judge decides that a non-account-holding spouse is entitled to some or all of the account’s proceeds. The other occurs when the spouses do agree… and their settlement agreement calls for the non-account-holding spouse to get a portion (or all) of an account.

A recent divorce case from Montgomery County is an example of the latter scenario. The spouses worked out a marital settlement agreement (MSA) in which the husband agreed to provide the wife with a fraction of his Federal Employee Retirement System Pension and Thrift Savings Plan. In addition, he agreed to ensure that the required court orders (directing the distribution) were issued.

How the Law of ‘Federal Preemption’ May Play a Role in Your Maryland Divorce

September 17, 2024 | by Anthony A. Fatemi, LLC

Most people probably believe that their divorce settlement agreement or judgment is the final word on the distribution of their marital assets. While that is true in many cases, it is not necessarily so. Understanding when other things may supersede your divorce agreement and dictate a different distribution scheme can be essential to negotiating your settlement agreement effectively. Accomplishing these goals often requires representation from a knowledgeable Maryland divorce lawyer experienced in the various factors – like federal preemption — that can influence a divorce outcome.

One common scenario where this occurs is when your case implicates federal law. How might federal law factor into a Maryland divorce? A recent Montgomery County case offers an illustration.

M.C. and B.C. married in 1999. The wife, then a federal worker, opened a thrift savings plan (TSP) under the auspices of the Federal Employees’ Retirement System Act. On the account’s paperwork, she listed her husband as the sole beneficiary of her TSP.

What Maryland Law Says About Making (or Receiving) a Marital Settlement Offer Contingent on Acceptance Deadline

August 12, 2024 | by Anthony A. Fatemi, LLC

Most of us have seen or heard advertisements or sales pitches imploring audiences to “act now” or that an offer is “for a limited time only.” These approaches are common in motivating prospective buyers of appliances, furniture, or vehicles to act. But what about… a spouse in a divorce settlement negotiation? What should you do if you receive an offer that severely restricts your time to respond? One thing you definitely should do before you sign, whether the agreement you are contemplating has a fast-approaching deadline or no signing deadline at all, is to speak to an experienced Maryland divorce lawyer who can give you the advice you need before you make a decision.

A long-running divorce battle from Anne Arundel County offers insight into these settlement agreements and how the courts treat them.

The spouses, T.P. and D.P., began divorce proceedings in 2019 after three years of marriage. After the spouses “engaged in extensive settlement negotiations,” the wife’s attorney sent the husband’s counsel a finalized marital settlement agreement on Sept. 25, 2020. The correspondence that the wife’s counsel attached to the proposed agreement indicated that the offer was valid only if the husband signed and returned the completed agreement that same day.

The Importance of Ensuring that Your Maryland Divorce Settlement Agreement is ‘Clear’ and ‘Unambiguous’

July 24, 2024 | by Anthony A. Fatemi, LLC

When you and/or your spouse own substantial assets, including investments, real estate, and so forth, the likelihood rises that you will need a relatively complex (and perhaps lengthy) settlement agreement. Part of ensuring that the agreement you sign is the agreement you need is ensuring that you have a skilled Maryland divorce lawyer by your side throughout the process, from negotiation to drafting to execution to enforcement.

Proper legal representation is essential, in part, to ensure that the contract you sign is well-written, avoiding unnecessary ambiguities or vagueness that can lead to unwelcome outcomes in the future.

A recent divorce case that originated in Montgomery County is a good example. The case involved a couple who reached a settlement agreement in January 2021 that covered the distribution of all of their assets.

Marital-Versus-Non-Marital Asset Division Decisions in Maryland… and How the ‘Source of Funds’ Theory Applies to Them

June 10, 2024 | by Anthony A. Fatemi, LLC

In Maryland, one of the most essential components of a divorce is the division of assets and the biggest asset most divorcing couples possess is their home. As a result, deciding whether the marital home is a marital asset, one spouse’s separate property, or a combination of the two can make a big difference in the final outcome the court reaches. When seeking a fair and just financial outcome in your divorce case, ensuring that the court has a clear and complete picture of your home – and how it is/was paid for – is vital. If you have questions about equitable distribution in a divorce, an experienced Maryland divorce lawyer can help you with knowledgeable answers about how the courts in this state make these determinations.

In 1978, the Maryland General Assembly passed the Marital Property Act. In 1982, the Maryland Supreme Court “traced the history of the act in-depth and divined the legislative intent.” In its ruling, the high court determined that, under the Marital Property Act, the correct method for determining whether an asset was marital or non-marital was to follow the “source of funds” theory, rather than using Maryland’s old “title system.”

Under the source of funds theory, marital-versus-non-marital decisions depend on “the source of the contributions as payments are made, rather than the time at which legal or equitable title to or possession of the property is obtained.” A recent divorce case from Prince George’s County is a good example of how the courts apply this theory.

When Personal-Professional Relationship Breakdowns Lead to Unreasonable Lengthy Litigation: Awards of Attorneys’ Fees in Maryland

April 16, 2024 | by Anthony A. Fatemi, LLC

When you bring in someone as a co-owner of your business, you want someone you can trust implicitly. For many people, the most trusted people in their lives are their spouses. However, when the personal relationship goes awry, so may the business relationship. When both break down, legal action is often necessary.

P.R. and M.D. were a same-sex couple who “considered themselves married, but… were never legally married.” The women also were business partners for more than a decade and a half, sharing a home in Brandywine and a second property in Accokeek which housed their business, a daycare facility.

They separated in 2017. M.D. sued, asking the court to order a sale of the two properties and the daycare business. P.R. countersued, alleging that M.D. had engaged in “embezzlement, deceit, fraudulent conversion, and breach of fiduciary duty.” The foundation of this claim was M.D.’s allegedly moving daycare funds from business accounts to personal accounts.

Obtaining Income Information Through Pretrial Discovery as Part of Your Maryland Divorce

March 28, 2024 | by Anthony A. Fatemi, LLC

Performing complete pretrial discovery is often an essential part of divorce litigation. Your spouse’s income and earnings are likely a crucial piece of that puzzle. This discovery may be as basic as obtaining a few items documenting wages (like W-2 forms) or a complicated matter involving documentation of multiple streams of present and deferred income. An experienced Maryland divorce lawyer can be vital to getting all the information necessary to provide the court with a full and complete picture of your spouse’s wealth and assets.

The discovery dispute in the divorce of C.B. and R.B. represents a clear illustration of how counsel can help when you’re initially thwarted in your efforts to obtain essential income information.

The couple were two high-powered professionals who married in 2011 and separated in 2023. The couple had prenuptial and postnuptial agreements that resolved most – but not all — of their property issues. Specifically, the spouses disputed issues of a monetary award and division of some personal property and retirement accounts.